The messy legal battle between Krafton and the leadership of Subnautica 2 developer Unknown Worlds Entertainment is over. The two sides have reached a settlement that will see Krafton pay bonuses to all staffers at the studio and Ted Gill once again leaving his post as Unknown Worlds CEO. 

"We mutually agreed to part ways," Gill told Bloomberg. "New leadership is the best way for the studio to move forward." Whoever takes over as CEO will be an external hire, according to Gill.

Krafton ousted Gill and the co-founders of Unknown Worlds, Charlie Cleveland and Max McGuire, last summer. In a lawsuit, the trio accused the company of firing them and delaying Subnautica 2 to 2026 to avoid having to pay $250 million in bonuses if it reached certain revenue thresholds last year. 

A judge ordered Krafton to rehire Gill as CEO back in March and Subnautica 2 was released in early access in May. The co-op survival game sold well enough — more than 4 million copies so far — to trigger the bonus payout that was stipulated in the acquisition agreement when Krafton bought the developer in 2021. 

In fact, according to Gill, the development team will be "compensated significantly more" than the initial deal stipulated and will earn "further incentives" from the future success of Subnautica 2. Bloomberg notes that all Unknown Worlds staff (not just those who were employed at the time of the acquisition) will receive bonuses, which will be paid in three annual installments.

"Krafton, Inc., Unknown Worlds Entertainment and Ted Gill, Charlie Cleveland, and Max McGuire have reached a mutual settlement and agreed to dismiss all pending legal proceedings," Krafton told Engadget in a statement. "Unknown Worlds and Krafton are focused on supporting Subnautica 2, its Early Access journey to the full 1.0 release and the global community that has made the franchise so special. Unknown Worlds will continue leading development, with Krafton providing support for the success of the game."